Trump’s Housing and Economic Strategy Draws Criticism Amid Midterm Push
As President Donald Trump kicked off an aggressive midterm push in Iowa, his administration's pitch of using 401(k) retirement plans as a path to homeownership is facing criticism from economists, citing housing supply as the real issue. While Trump has also signed an executive order to fast-track rebuilding in Los Angeles, he faces opposition from New Jersey’s governor over the funding freeze for a major rail project. Amid the political climate, Trump is refocusing his attention on the U.S. economy and is promoting his 'Board of Peace' initiative.
Economy and Housing
Trump's economic strategy has been under scrutiny, particularly related to his housing proposal. Experts argue that the 401(k) housing pitch, intended to aid homeownership, ignores the root cause of the housing crisis—restrictive zoning and regulatory policies that limit supply and inflate home prices. Ben Harris, vice president and director of economic studies at the Brookings Institution, said, Anything that doesn’t answer the question, ‘Are we going to have more homes at the end of this?’ is going to be an insufficient response.
Rebuilding LA and the Gateway Tunnel Project
Trump has also been actively involved in rebuilding efforts in Los Angeles. His executive order aims to override California's permitting requirements, allowing builders to rebuild more quickly following last year's fires. However, New Jersey Gov. Mikie Sherrill has criticized Trump for freezing funding for the $16 billion Gateway Tunnel project, which he calls an illegal attack on New Jersey.
Midterm Push and the Board of Peace
Facing a challenging political climate, Trump has embarked on a campaign to hold the Republican majorities in the House and Senate in the 2026 midterm elections. Despite various criticisms, Trump inaugurated his midterm campaign in Iowa, emphasizing the importance of maintaining control of Congress for his second-term agenda.
In addition to his domestic policies, Trump is also promoting his international 'Board of Peace' initiative. The new US-led body, unveiled in Davos, promises to rebuild Gaza and secure Israel. However, it has spurred international caution, with some questioning its legitimacy due to the absence of Palestinian representation.
Controversies and Reactions
Trump's renewed focus on economic issues comes amid an outcry over two fatal shootings by federal agents in Minnesota. House Democrats have called for the firing of Department of Homeland Security (DHS) Secretary Kristi Noem, warning of impeachment if she remains in office. A federal judge in Minnesota has since blocked the Trump administration from destroying or altering evidence
related to one of the shootings.
Conclusion
As Trump continues to push his economic and housing strategies, he faces opposition and criticism on multiple fronts. With the midterms approaching, these issues are likely to remain at the forefront of political debate.